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3 President Barack Obama Inaugural Address – Jan. 20, 2009 “For everywhere we look, there is work to be done. The state of the economy calls for action, bold and swift, and we will act – not only to create new jobs, but to lay a new foundation for growth. We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together…All this we can do. All this we will do.” - President Barack Obama

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4 Main Objectives of the Act •Job preservation and creation •Infrastructure investment •Energy efficiency and science •Assistance to unemployed, and •State and local fiscal stabilization

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8 Funds Apportioned To States •$26.6 billion total apportionment to States •Formula based on 50/50 combination of –Surface Transportation Program in 23 USC 104(b) –Same ratio as the obligation limitation distribution for FY 2008

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9 Funds Apportioned To States •Set-asides and suballocation of funds –3% set-aside for Transportation Enhancements –30% suballocation per STP requirements •Funds suballocated for –Individual Areas over 200,000 population –Areas with populations less than or equal to 200,000 –A portion is reserved for areas less than 5,000 population

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10 Appropriation for Highways- $27.5B Less Amount Allocated Before Apportionment $840M Remainder Apportioned to States $26.6B Transportation Enhancements – 3% Sub-Allocation for Areas Based on Population – 30% For Any Area of the State – 67% For Individual Urbanized Areas over 200,000 by % of Population For Areas with Population ≤ 200,000 For Areas with Population <5000 Distribution of Highway Funds Under ARRA

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11 Funds Apportioned to State •Eligible Uses –Restoration, repair, construction and other activities under Surface Transportation Program –Passenger and freight rail transportation and port infrastructure projects as described under TIFIA •May not be used for conversion of advance construction on previously authorized federal-aid projects. •Federal share up to 100%

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12 Funds Apportioned to State •Act also states that in establishing project priorities for funding, priority is to be given to projects that are: –Projected for completion within 3 years –Located in economically distressed areas –Expeditious project delivery –Maximizing job creation and economic benefit

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13 Use It or Lose It Provisions •First Redistribution –Fifty percent of funds apportioned to the State – excluding funds sub-allocated – must be obligated within 120 days or the remainder will be redistributed. •Second Redistribution –After 1 year all unobligated balances of apportioned funds, included funds sub-allocated, will be redistributed. Recipients of redistributed funds will have until Sept. 30, 2010 to obligate. 67% For Any Area of the State 3% TE 30% Sub-Allocation At 120 days 50% of the apportioned funds must be obligated (excluding sub-allocated funds)

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14 Maintenance of Effort Sections 1201(a) and (b) •Certification by Governor –Within 30 days of enactment, the Governor must certify to the Secretary that the State will maintain the level of State funding for transportation projects. –Must identify the amount of funds the State planned to expend from State sources from the date of enactment through September 30, 2010.

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15 Maintenance of Effort Sections 1201(a) and (b) •Failure to Maintain Effort –The State will be prohibited from receiving additional limitation in August redistribution for fiscal year 2011 •Executed at Governor to Secretary level.

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16 Other Certifications Section 1511 and Section 1607 •The ARRA also requires two additional certifications: –Section 1511: The Governor is to certify that infrastructure investments have received the full review and vetting required by law. –Section 1607: The Governor is to certify within 45 days that the State will request and use funds provided by the ARRA and the funds will be used to create jobs and promote economic health.

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18 Buy American Provisions •Due to the Applicability of Title 23 Requirements in Title XII, there will be no changes in our BA implementation for ARRA projects •FHWA’s BA statutory provisions in 23 USC 313 and our regulatory policies in 23 CFR 635.410 apply. •Waivers must be in the Federal Register

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19 Davis Bacon Requirements •Davis Bacon will apply to all ARRA projects (the existing exclusion for local roads and rural minor collectors will not apply). •This is the result of the “Notwithstanding any other provision of law and in a manner consistent with other provisions of this Act…” language in Section 1606.

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20 National Surface Transportation Discretionary Grants •$1.5 billion (≤ $200 million for TIFIA) •Projects with significant impact on Nation, Metropolitan Area or Region. •Ensure equitable geographic distribution of funds and appropriate balance between urban/rural •≤ 20% of total funds to single State •Grants between $20-$300 million •Federal share up to 100%

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21 National Surface Transportation Discretionary Grants •Priority to projects that require additional share of Federal funds to complete financing. •Priority to projects expected to be completed within 3 years of enactment. •Publish competitive criteria within 90 days of enactment •Applications submitted not later than 180 days after the publication of the criteria •All projects selected within 1 year •Obligated by end of FY 2011

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22 Accountability and Transparency “Every American will be able to hold Washington accountable for these decisions by going online to see how and where their tax dollars are being spent.” - President Barack Obama

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26 Periodic Reports Reporting Schedule •Required 90 & 180 days, and 1, 2, and 3 years after enactment. •First report due to Congress by May 18 •Monthly and periodic reports will serve as input •Includes information on: 1.Number of projects where work has begun 2.Number of projects where work is complete 3.Number of direct and indirect jobs 4.Aggregate expenditure of State funds 5.Total amount appropriated, allocated, obligated, and outlayed 6.Number of projects let to bid and number of projects awarded

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27 Quarterly Reports Reporting Schedule •Monthly and periodic reports will serve as input for the quarterly reports •FHWA reports to Recovery.gov within 30 days of the end of each calendar quarter •First report due by July 30, 2009 •Includes information on: 1.Name of project 2.Description of project 3.Estimate of completion status 4.Number of jobs created and number of jobs retained 5.Purpose, cost, and rationale 6.Subcontract information 7.Total funds received 8.Total amount expended or obligated

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28 FHWA Stewardship and Oversight •Delivery of the ARRA is the top priority for FHWA •FHWA is redirecting existing staff and adding additional part-time and full time staff to support increased work load.

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29 FHWA Stewardship and Oversight •Projects must follow all Federal requirements •Projects will be advanced with maximum flexibility under the regulations •Projects will be administered in accordance with our normal Stewardship Agreements

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30 FHWA Stewardship and Oversight •A higher level of accountability and increased attention by GAO and IG is expected. •FHWA is developing an ARRA Risk Management Plan. •FHWA will use a variety of techniques to conduct in-process examination of areas identified as high risk. •Financial management and State oversight of local projects will be areas of particular attention.

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32 ARRA Project Sign: Guidance •Sign Design –Sign design layout and color should be similar to the sign design shown on the previous slide •Sign Placement –Should be easily identifiable with the ARRA project –Should not obscure other traffic control devices –Should not be places near key decision points.

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